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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended January 31, 2023
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from              to             
Commission File Number: 001-09614
https://cdn.kscope.io/f38b2274b7aa95db998cc82704dfa176-mtn-20230131_g1.jpg
Vail Resorts, Inc.
(Exact Name of Registrant as Specified in Its Charter)
Delaware51-0291762
(State or Other Jurisdiction of
Incorporation or Organization)
(I.R.S. Employer
Identification No.)
390 Interlocken Crescent
Broomfield,Colorado80021
(Address of Principal Executive Offices)(Zip Code)
(303) 404-1800
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading SymbolName of each exchange on which registered
Common Stock, $0.01 par valueMTNNew York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.      Yes      No
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).      Yes      No
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
 
Large accelerated filer   Accelerated filer 
Non-accelerated filer   Smaller reporting company 
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).      Yes     No
As of March 6, 2023, 40,330,446 shares of the registrant’s common stock were outstanding.



Table of Contents
 
PART IFINANCIAL INFORMATIONPage
Item 1.Financial Statements (unaudited).
Item 2.
Item 3.
Item 4.
PART IIOTHER INFORMATION
Item 1.
Item 1A.
Item 2.
Item 3.
Item 4.
Item 5.
Item 6.

1


Vail Resorts, Inc.
Consolidated Condensed Balance Sheets
(In thousands, except per share amounts)
(Unaudited)
January 31, 2023July 31, 2022January 31, 2022
Assets
Current assets:
Cash and cash equivalents$1,295,252 $1,107,427 $1,407,019 
Restricted cash24,103 18,680 15,643 
Trade receivables, net160,393 383,425 167,088 
Inventories, net122,088 108,723 104,573 
Other current assets158,295 173,277 73,104 
Total current assets1,760,131 1,791,532 1,767,427 
Property, plant and equipment, net (Note 7)
2,421,395 2,118,052 2,190,332 
Real estate held for sale or investment90,354 95,983 95,331 
Goodwill, net (Note 7)
1,723,019 1,754,928 1,764,106 
Intangible assets, net310,666 314,058 318,078 
Operating right-of-use assets200,667 192,070 198,672 
Other assets58,730 51,405 35,796 
Total assets$6,564,962 $6,318,028 $6,369,742 
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable and accrued liabilities (Note 7)
$1,144,795 $942,830 $1,067,137 
Income taxes payable73,559 104,275 24,153 
Long-term debt due within one year (Note 5)
69,582 63,749 63,746 
Total current liabilities1,287,936 1,110,854 1,155,036 
Long-term debt, net (Note 5)
2,789,827 2,670,300 2,695,589 
Operating lease liabilities184,298 174,567 188,797 
Other long-term liabilities237,478 246,359 254,209 
Deferred income taxes, net288,072 268,464 282,427 
Total liabilities4,787,611 4,470,544 4,576,058 
Commitments and contingencies (Note 9)
Stockholders’ equity:
Preferred stock, $0.01 par value, 25,000 shares authorized, no shares issued and outstanding
   
Common stock, $0.01 par value, 100,000 shares authorized, 46,795, 46,744 and 46,713 shares issued, respectively
468 467 467 
Exchangeable shares, $0.01 par value, 0, 3 and 33 shares issued and outstanding, respectively (Note 4)
   
Additional paid-in capital1,112,519 1,184,577 1,172,595 
Accumulated other comprehensive (loss) income(8,565)10,923 10,418 
Retained earnings837,573 895,889 786,473 
Treasury stock, at cost, 6,466, 6,466 and 6,161 shares, respectively (Note 11)
(479,417)(479,417)(404,411)
Total Vail Resorts, Inc. stockholders’ equity1,462,578 1,612,439 1,565,542 
Noncontrolling interests314,773 235,045 228,142 
Total stockholders’ equity 1,777,351 1,847,484 1,793,684 
Total liabilities and stockholders’ equity$6,564,962 $6,318,028 $6,369,742 
The accompanying Notes are an integral part of these unaudited consolidated condensed financial statements.
2


Vail Resorts, Inc.
Consolidated Condensed Statements of Operations
(In thousands, except per share amounts)
(Unaudited)
 
Three Months Ended January 31,Six Months Ended January 31,
 2023202220232022
Net revenue:
Mountain and Lodging services and other$901,837 $770,300 $1,112,223 $892,160 
Mountain and Lodging retail and dining 192,182 136,055 261,130 189,456 
Resort net revenue1,094,019 906,355 1,373,353 1,081,616 
Real Estate7,699180 7,812 495 
Total net revenue1,101,718 906,535 1,381,165 1,082,111 
Operating expense (exclusive of depreciation and amortization shown separately below):
Mountain and Lodging operating expense507,216 364,336 749,502 548,061 
Mountain and Lodging retail and dining cost of products sold75,431 53,715 110,516 77,944 
General and administrative116,616 91,261 215,415 168,495 
Resort operating expense699,263 509,312 1,075,433 794,500 
Real Estate operating expense6,310 1,511 7,692 2,981 
Total segment operating expense705,573 510,823 1,083,125 797,481 
Other operating (expense) income:
Depreciation and amortization(65,989)(62,070)(130,603)(123,559)
Gain on sale of real property757 931 757 962 
Change in estimated fair value of contingent consideration (Note 8)
(1,100)(16,780)(1,736)(18,780)
(Loss) gain on disposal of fixed assets and other, net(1,780)7,347 (1,786)16,214 
Income from operations328,033 325,140 164,672 159,467 
Mountain equity investment income, net42 818 388 2,332 
Investment income and other, net7,108 257 9,994 756 
Foreign currency gain (loss) on intercompany loans (Note 5)
2,338 (2,870)(3,797)(2,039)
Interest expense, net(38,370)(37,366)(73,672)(76,911)
Income before (provision for) benefit from income taxes299,151 285,979 97,585 83,605 
(Provision for) benefit from income taxes(79,032)(52,049)(21,026)7,804 
Net income220,119 233,930 76,559 91,409 
Net income attributable to noncontrolling interests(11,440)(10,539)(4,851)(7,350)
Net income attributable to Vail Resorts, Inc.$208,679 $223,391 $71,708 $84,059 
Per share amounts (Note 4):
Basic net income per share attributable to Vail Resorts, Inc.$5.17 $5.51 $1.78 $2.08 
Diluted net income per share attributable to Vail Resorts, Inc.$5.16 $5.47 $1.77 $2.06 
Cash dividends declared per share$1.91 $0.88 $3.82 $1.76 
The accompanying Notes are an integral part of these unaudited consolidated condensed financial statements.
3



Vail Resorts, Inc.
Consolidated Condensed Statements of Comprehensive Income
(In thousands)
(Unaudited)

Three Months Ended January 31,Six Months Ended January 31,
 2023202220232022
Net income$220,119 $233,930 $76,559 $91,409 
Foreign currency translation adjustments82,468 (48,857)(35,340)(33,720)
Change in estimated fair value of hedging instruments, net of tax(2,787)4,483 5,220 8,828 
Comprehensive income299,800 189,556 46,439 66,517 
Comprehensive (income) loss attributable to noncontrolling interests(30,778)(436)5,781 161 
Comprehensive income attributable to Vail Resorts, Inc.$269,022 $189,120 $52,220 $66,678 
The accompanying Notes are an integral part of these unaudited consolidated condensed financial statements.
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Vail Resorts, Inc.
Consolidated Condensed Statements of Stockholders’ Equity
(In thousands)
(Unaudited)
Common StockAdditional Paid in CapitalAccumulated Other Comprehensive Income (Loss)Retained EarningsTreasury StockTotal Vail Resorts, Inc. Stockholders’ EquityNoncontrolling InterestsTotal Stockholders’ Equity
Vail ResortsExchangeable
Balance, October 31, 2021$466 $ $1,192,901 $44,689 $598,796 $(404,411)$1,432,441 $233,989 $1,666,430 
Comprehensive income:
Net income— — — — 223,391 — 223,391 10,539 233,930 
Foreign currency translation adjustments— — — (38,754)— — (38,754)(10,103)(48,857)
Change in estimated fair value of hedging instruments, net of tax— — — 4,483 — — 4,483 — 4,483 
Total comprehensive income189,120 436 189,556 
Stock-based compensation expense— — 6,479 — — — 6,479 — 6,479 
Issuance of shares under share award plans, net of shares withheld for employee taxes1 — (26,785)— — — (26,784)— (26,784)
Dividends (Note 4)
— — — — (35,714)— (35,714)— (35,714)
Distributions to noncontrolling interests, net— — — — — — — (6,283)(6,283)
Balance, January 31, 2022$467 $ $1,172,595 $10,418 $786,473 $(404,411)$1,565,542 $228,142 $1,793,684 
Balance, October 31, 2022$468 $ $1,106,813 $(68,908)$705,923 $(479,417)$1,264,879 $286,839 $1,551,718 
Comprehensive income:
Net income— — — — 208,679 — 208,679 11,440 220,119 
Foreign currency translation adjustments— — — 63,130 — — 63,130 19,338 82,468 
Change in estimated fair value of hedging instruments, net of tax— — — (2,787)— — (2,787)— (2,787)
Total comprehensive income269,022 30,778 299,800 
Stock-based compensation expense— — 6,844 — — — 6,844 — 6,844 
Issuance of shares under share award plans, net of shares withheld for employee taxes — (1,138)— — — (1,138)— (1,138)
Dividends (Note 4)
— — — — (77,029)— (77,029)— (77,029)
Distributions to noncontrolling interests, net— — — — — — — (2,844)(2,844)
Balance, January 31, 2023$468 $ $1,112,519 $(8,565)$837,573 $(479,417)$1,462,578 $314,773 $1,777,351 



5


Common StockAdditional Paid in CapitalAccumulated Other Comprehensive Income (Loss)Retained EarningsTreasury StockTotal Vail Resorts, Inc. Stockholders’ EquityNoncontrolling InterestsTotal Stockholders’ Equity
Vail ResortsExchangeable
Balance, July 31, 2021$466 $ $1,196,993 $27,799 $773,752 $(404,411)$1,594,599 $234,469 $1,829,068 
Comprehensive income:
Net income— — — — 84,059 — 84,059 7,350 91,409 
Foreign currency translation adjustments— — — (26,209)— — (26,209)(7,511)(33,720)
Change in estimated fair value of hedging instruments, net of tax— — — 8,828 — — 8,828 — 8,828 
Total comprehensive income66,678 (161)66,517 
Stock-based compensation expense— — 12,904 — — — 12,904 — 12,904 
Issuance of shares under share award plans, net of shares withheld for employee taxes1 — (37,302)— — — (37,301)— (37,301)
Dividends (Note 4)
— — — — (71,338)— (71,338)— (71,338)
Distributions to noncontrolling interests, net— — — — — — — (6,166)(6,166)
Balance, January 31, 2022$467 $ $1,172,595 $10,418 $786,473 $(404,411)$1,565,542 $228,142 $1,793,684 
Balance, July 31, 2022$467 $ $1,184,577 $10,923 $895,889 $(479,417)$1,612,439 $235,045 $1,847,484 
Comprehensive income:
Net income— — — — 71,708 — 71,708 4,851 76,559 
Foreign currency translation adjustments— — — (24,708)— — (24,708)(10,632)(35,340)
Change in estimated fair value of hedging instruments— — — 5,220 — — 5,220 — 5,220 
Total comprehensive income52,220 (5,781)46,439 
Stock-based compensation expense— — 13,189 — — — 13,189 — 13,189 
Issuance of shares under share award plans, net of shares withheld for employee taxes1 — (5,181)— — — (5,180)— (5,180)
Dividends— — — — (154,047)— (154,047)— (154,047)
Cumulative effect of adoption of ASU 2020-06 (Notes 2 & 5)
— — (80,066)— 24,023 — (56,043)— (56,043)
Estimated acquisition date fair value of noncontrolling interests (Note 6)
— — — — — — — 91,524 91,524 
Distributions to noncontrolling interests, net— — — — — — — (6,015)(6,015)
Balance, January 31, 2023$468 $ $1,112,519 $(8,565)$837,573 $(479,417)$1,462,578 $314,773 $1,777,351 
The accompanying Notes are an integral part of these unaudited consolidated condensed financial statements.


6


Vail Resorts, Inc.
Consolidated Condensed Statements of Cash Flows
(In thousands)
(Unaudited)
Six Months Ended January 31,
 20232022
Cash flows from operating activities:
Net income$76,559 $91,409 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization130,603 123,559 
Stock-based compensation expense13,189 12,904 
Deferred income taxes, net19,947 9,214 
Change in estimated fair value of contingent consideration1,736 18,780 
Other non-cash expense (income), net866 (602)
Changes in assets and liabilities:
Trade receivables, net226,796 178,252 
Inventories, net(12,962)(23,627)
Accounts payable and accrued liabilities96,247 89,502 
Deferred revenue104,996 147,614 
Income taxes payable(31,166)(7,581)
Other assets and liabilities, net(21,318)(28,095)
Net cash provided by operating activities605,493 611,329 
Cash flows from investing activities:
Capital expenditures(206,554)(128,854)
Return of deposit for acquisition of business114,506  
Acquisition of businesses, net of cash acquired(38,567)(118,099)
Investments in short-term deposits(86,756) 
Other investing activities, net11,346 21,421 
Net cash used in investing activities(206,025)(225,532)
Cash flows from financing activities:
Repayments of borrowings under Vail Holdings Credit Agreement(31,250)(31,250)
Repayments of borrowings under Whistler Credit Agreement (23,145)
Repayment of EB-5 Development Notes (51,500)
Employee taxes paid for share award exercises(5,181)(37,302)
Dividends paid(154,047)(71,338)
Other financing activities, net(10,899)(6,158)
Net cash used in financing activities(201,377)(220,693)
Effect of exchange rate changes on cash, cash equivalents and restricted cash(4,843)(1,016)
Net increase in cash, cash equivalents and restricted cash193,248 164,088 
Cash, cash equivalents and restricted cash:
Beginning of period1,126,107 1,258,574 
End of period$1,319,355 $1,422,662 
Non-cash investing activities:
Accrued capital expenditures$49,091 $17,388 
The accompanying Notes are an integral part of these unaudited consolidated condensed financial statements.
7


Vail Resorts, Inc.
Notes to Consolidated Condensed Financial Statements
(Unaudited)

1.Organization and Business
Vail Resorts, Inc. (“Vail Resorts”) is organized as a holding company and operates through various subsidiaries. Vail Resorts and its subsidiaries (collectively, the “Company”) operate in three business segments: Mountain, Lodging and Real Estate. The Company refers to “Resort” as the combination of the Mountain and Lodging segments.
In the Mountain segment, the Company operates the following 41 destination mountain resorts and regional ski areas:

https://cdn.kscope.io/f38b2274b7aa95db998cc82704dfa176-mtn-20230131_g2.jpg


*Denotes a destination mountain resort, which generally receives a meaningful portion of skier visits from long-distance travelers, as opposed to the Company’s regional ski areas, which tend to generate skier visits predominantly from their respective local markets.

Additionally, the Mountain segment includes ancillary services, primarily including ski school, dining and retail/rental operations, and for the Company’s Australian ski areas, including lodging and transportation operations.
In the Lodging segment, the Company owns and/or manages a collection of luxury hotels and condominiums under its RockResorts brand; other strategic lodging properties and a large number of condominiums located in proximity to the Company’s North American mountain resorts; National Park Service (“NPS”) concessioner properties including the Grand Teton Lodge Company, which operates destination resorts in Grand Teton National Park; a Colorado resort ground transportation company and mountain resort golf courses.

Vail Resorts Development Company, a wholly-owned subsidiary, conducts the operations of the Company’s Real Estate segment, which owns, develops and sells real estate in and around the Company’s resort communities.
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The Company’s mountain business and its lodging properties at or around the Company’s mountain resorts are seasonal in nature, and typically experience their peak operating seasons primarily from mid-December through mid-April in North America and Europe. The peak operating season at the Company’s Australian resorts, NPS concessioner properties and golf courses generally occurs from June to early October.

2.     Summary of Significant Accounting Policies
Basis of Presentation
Consolidated Condensed Financial Statements — In the opinion of the Company, the accompanying Consolidated Condensed Financial Statements reflect all adjustments necessary to state fairly the Company’s financial position, results of operations and cash flows for the interim periods presented. All such adjustments are of a normal recurring nature. Results for interim periods are not indicative of the results for the entire fiscal year, particularly given the significant seasonality to the Company’s operating cycle. The accompanying Consolidated Condensed Financial Statements should be read in conjunction with the audited Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended July 31, 2022. Certain information and footnote disclosures, including significant accounting policies, normally included in fiscal year financial statements prepared in accordance with accounting principles generally accepted in the U.S. (“GAAP”) have been condensed or omitted. The Consolidated Condensed Balance Sheet as of July 31, 2022 was derived from audited financial statements.
Use of Estimates — The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the balance sheet date and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from those estimates.
Fair Value of Financial Instruments — The recorded amounts for cash and cash equivalents, restricted cash, trade receivables, other current assets, accounts payable and accrued liabilities approximate fair value due to their short-term nature. The fair value of amounts outstanding under the Company’s credit agreements and the Employee Housing Bonds (as defined in Note 5, Long-Term Debt) approximate book value due to the variable nature of the interest rate associated with the debt. The recorded amount outstanding under the Company’s NRP Loan (as defined in Note 5, Long-Term Debt), which was assumed by the Company during the six months ended January 31, 2023 approximates fair value as the debt obligation was recorded at estimated fair value in conjunction with the preliminary purchase accounting for the Andermatt-Sedrun acquisition (see Note 6, Acquisitions). The estimated fair values of the 6.25% Notes and the 0.0% Convertible Notes (each as defined in Note 5, Long-Term Debt) are based on quoted market prices (a Level 2 input). The estimated fair value of the EPR Secured Notes (as defined in Note 5, Long-Term Debt) has been estimated using analyses based on current borrowing rates for debt with similar remaining maturities and ratings (a Level 2 input). The carrying values, including any unamortized premium or discount, and estimated fair values of the 6.25% Notes, 0.0% Convertible Notes and EPR Secured Notes as of January 31, 2023 are presented below (in thousands):
January 31, 2023
Carrying ValueEstimated Fair Value
6.25% Notes$600,000 $604,062 
0.0% Convertible Notes$575,000 $547,339 
EPR Secured Notes$133,305 $161,156 
Recently Issued Accounting Standards
Adopted Standards
In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” The ASU provides optional transition guidance, for a limited time, to companies that have contracts, hedging relationships or other transactions that reference the London Inter-bank Offered Rate (“LIBOR”) or another reference rate which is expected to be discontinued because of reference rate reform. The amendments provide optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions if certain criteria are met. The amendments of ASU 2020-04 were effective as of March 12, 2020. In December 2022, the FASB issued ASU 2022-06, “Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848,” which extended the effective date of the provisions of ASU 2020-04 to December 31, 2024. The amendments in this update may be applied as of any date from the beginning of an interim period that includes or
9


is subsequent to March 12, 2020, or prospectively from a date within an interim period that includes or is subsequent to March 12, 2020, up to the date that the financial statements are available to be issued. All other amendments should be applied on a prospective basis.
The Company is party to various interest rate swap agreements that hedge the variable interest rate component of underlying cash flows of $400.0 million in principal amount of its Vail Holdings Credit Agreement (as defined in Note 5, Long-Term Debt), which are designated as cash flow hedges. During the six months ended January 31, 2023, the Company entered into an amendment to its Vail Holdings Credit Agreement (the “Fifth Amendment”) to modify the calculation of interest under the Vail Holdings Credit Agreement from being calculated based on LIBOR to being calculated based on SOFR (see Note 5, Long-Term Debt, for additional information). Subsequent to the Fifth Amendment, the interest rate swaps were also amended to transition from a hedge of LIBOR to a hedge of SOFR. The Company elected certain optional expedients provided by Topic 848, which allowed the Company to not apply certain modification accounting requirements or reassess the previous accounting designation of the interest rate swap agreements as cash flow hedges.
In August 2020, the FASB issued ASU 2020-06, “Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity” which simplifies the guidance in Accounting Standards Codifications (“ASC”) 470-20, “Debt – Debt with Conversion and Other Options.” The guidance removes certain rules which required separation of the embedded conversion features from the host contract for convertible instruments. The updated guidance requires bifurcation only if the convertible debt feature qualifies as a derivative under ASC 815, “Derivatives and Hedging”, or for convertible debt issued at a substantial premium. The guidance also amends the guidance in ASC 815-40, “Derivatives and Hedging – Contracts in Entity’s Own Equity” for certain contracts in an entity’s own equity that are currently accounted for as derivatives. This standard is effective for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years (the Company’s first quarter of the fiscal year ending July 31, 2023). This standard allows for a modified retrospective or fully retrospective method of transition. The Company adopted ASU 2020-06 on August 1, 2022 using the modified retrospective method, and therefore prior period financial information has not been retrospectively adjusted and continues to be reported under the accounting standards in effect for those periods.
Upon adoption of the standard, the Company reclassified the previously bifurcated equity component of its 0.0% Convertible Notes (as defined in Note 5, Long-Term Debt) to long-term debt, net, as the convertible option on the 0.0% Convertible Notes does not qualify as a derivatives under ASC 815 nor were the 0.0% Convertible Notes issued at a substantial premium. This reclassification was partially offset by an increase to retained earnings for the previously recognized non-cash interest expense, net of tax that had been recorded as a result of amortization of the previously recorded debt discount. The adoption of this new guidance eliminates the recognition of non-cash interest expense to be recognized in future periods due to removal of the debt discount associated with the 0.0% Convertible Notes.
The impact of adoption of ASU 2020-06 on the Consolidated Condensed Balance Sheet as of adoption date was as follows (in thousands):
As of August 1, 2022
Balance SheetBalances without the Adoption of ASU 2020-06AdjustmentsBalances with the adoption of ASU 2020-06
Liabilities
Long term debt, net$2,670,300 $74,822 $2,745,122 
Deferred income taxes, net$268,464 $(18,779)$249,685 
Stockholders’ equity
Additional paid-in capital$1,184,577 $(80,066)$1,104,511 
Retained earnings$895,889 $24,023 $919,912 
ASU 2020-06 also prohibits the use of the treasury stock method for convertible instruments for the purposes of calculating diluted earnings per share (“EPS”) and instead requires application of the if-converted method. Under the if-converted method, diluted EPS will generally be calculated assuming that all of the convertible debt instruments were converted solely into shares of common stock at the beginning of the reporting period unless the result would be anti-dilutive. Pursuant to the terms of the 0.0% Convertible Notes, the principal amount of the 0.0% Convertible Notes is required to be paid in cash and only the premium due upon conversion, if any, is permitted to be settled in shares, cash or a combination of shares and cash. Consequently, for the Company the if-converted method would produce a similar result as the treasury stock method, which was utilized for the calculation of diluted EPS prior to the adoption of ASU 2020-06 for the 0.0% Convertible Notes.

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3.     Revenues
Disaggregation of Revenues
The following table presents net revenues disaggregated by segment and major revenue type for the three and six months ended January 31, 2023 and 2022 (in thousands):
Three Months Ended January 31,Six Months Ended January 31,
 2023202220232022
Mountain net revenue:
Lift$592,603 $521,582 $652,143 $535,911 
Ski School123,451 92,072 132,378 93,545 
Dining85,828 54,049 105,270 66,569 
Retail/Rental159,932 126,831 200,276 155,207 
Other51,628 39,841 125,092 92,443 
Total Mountain net revenue$1,013,442 $834,375 $1,215,159 $943,675 
Lodging net revenue:
Owned hotel rooms$13,479 $13,584 $37,044 $35,067 
Managed condominium rooms31,336 33,125 44,195 46,209 
Dining 13,184 8,375 30,013 18,650 
Transportation5,888 5,766 7,348 7,559 
Golf  5,939 5,118 
Other11,700 9,269 24,988 21,736 
75,587 70,119 149,527 134,339 
Payroll cost reimbursements4,990 1,861 8,667 3,602 
Total Lodging net revenue $80,577 $71,980 $158,194 $137,941 
Total Resort net revenue$1,094,019 $906,355 $1,373,353 $1,081,616 
Total Real Estate net revenue7,699 180 7,812 495 
Total net revenue$1,101,718 $906,535 $1,381,165 $1,082,111 

Contract Balances
Deferred revenue balances of a short-term nature were $619.5 million and $511.3 million as of January 31, 2023 and July 31, 2022, respectively. For the three and six months ended January 31, 2023, the Company recognized approximately $220.1 million and $274.6 million, respectively, of revenue that was included in the deferred revenue balance as of July 31, 2022. Deferred revenue balances of a long-term nature, comprised primarily of long-term private club initiation fee revenue, were $113.3 million, $117.2 million and $120.6 million as of January 31, 2023, July 31, 2022 and January 31, 2022, respectively. As of January 31, 2023, the weighted average remaining period over which revenue for unsatisfied performance obligations on long-term private club contracts will be recognized was approximately 15 years. Trade receivables, net were $160.4 million and $383.4 million as of January 31, 2023 and July 31, 2022, respectively.

Costs to Obtain Contracts with Customers
As of January 31, 2023, $13.0 million of costs to obtain contracts with customers were recorded within other current assets on the Company’s Consolidated Condensed Balance Sheet. The amounts capitalized are subject to amortization generally beginning in the second quarter of fiscal 2023, commensurate with the revenue recognized for related pass products. The Company recorded amortization of $12.3 million for these costs during both the three and six months ended January 31, 2023, which was recorded within Mountain and Lodging operating expenses on the Company’s Consolidated Condensed Statement of Operations.

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4.    Net Income per Share
Earnings per Share
Basic EPS excludes dilution and is computed by dividing net income attributable to Vail Resorts stockholders by the weighted-average shares outstanding during the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised, resulting in the issuance of shares of common stock that would then share in the earnings of Vail Resorts.
In connection with the Company’s acquisition of Whistler Blackcomb in October 2016, the Company issued consideration in the form of shares of Vail Resorts common stock (the “Vail Shares”), redeemable preferred shares of the Company’s wholly-owned Canadian subsidiary Whistler Blackcomb Holdings Inc. (“Exchangeco”) or cash (or a combination thereof). Whistler Blackcomb shareholders elected to receive 3,327,719 Vail Shares and 418,095 shares of Exchangeco (the “Exchangeco Shares”). The Exchangeco Shares could be redeemed for Vail Shares at any time until October 2023 or until the Company elected to convert any remaining Exchangeco Shares to Vail Shares, which the Company had the ability to do once total Exchangeco Shares outstanding fell below 20,904 shares (or 5% of the total Exchangeco Shares originally issued). In July 2022, the number of outstanding Exchangeco Shares fell below such threshold and on August 25, 2022, the Company elected to redeem all outstanding Exchangeco Shares, effective September 26, 2022. As of January 31, 2023, all Exchangeco Shares have been exchanged for Vail Shares. Both Vail Shares and Exchangeco Shares have a par value of $0.01 per share, and Exchangeco Shares, while they were outstanding, were substantially the economic equivalent of the Vail Shares. The Company’s calculation of weighted-average shares outstanding includes the Exchangeco Shares.

Presented below is basic and diluted EPS for the three months ended January 31, 2023 and 2022 (in thousands, except per share amounts):
 Three Months Ended January 31,
 20232022
 BasicDilutedBasicDiluted
Net income per share: